Huge Tax Savings

Section 179 was designed with businesses in mind.

That's why almost all types of "business equipment" that your company buys or finances qualify for the Section 179 deduction this year.

All businesses need equipment on an ongoing basis, be it machinery, computers, software, office furniture, vehicles, or other tangible goods. It's very likely that your business will purchase many of these goods during the year, and will do so again and again. Section 179 is designed to make purchasing that equipment during this calendar year financially attractive.

Limits and Savings

2021 Deduction Limit = $1.05 Million

This deduction is good on new and used equipment, as well as off-the-shelf software. To take the deduction for tax year 2021, the equipment must be financed/purchased and put into service between January 1, 2021 and the end of the day on December 31, 2021.

2021 Spending Cap on equipment purchases = $2.62 Million

This is the maximum amount that can be spent on equipment before the Section 179 Deduction available to your company begins to be reduced on a dollar for dollar basis. This spending cap makes Section 179 a true "small business tax incentive" (because larger businesses that spend more than $3.5 million on equipment won't get the deduction.)

Section 179 can change each year without notice (Section 179 has even changed mid-year), so it benefits you to take advantage of this generous tax code while it's available. Section 179 offers small businesses a great opportunity to maximize purchasing power. In addition, the recent Stimulus Acts have provided the small business owner with generous new (and higher) deduction limits in certain years. Most of the equipment your business will purchase, finance, or lease qualifies for the deduction (see Section 179 FAQ, linked below), so make sure you do your homework to verify that your company is leveraging the Section 179 Deduction this year.